Understanding the Business and Economic Environment

This report explains the UK Standard Industrial Classification (SIC 2007) and the car industry structure. It also has a STEEPLE analysis of Bentley as an organisation and the challenges that it faces from the external environment.

Understanding the Business
and Economic Environment

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
1. Determine any one business enterprise from the UK Standard Industrial Classification (SIC
2007) and select a UK public limited company (PLC) from that industry. ..........................1
2. The structure of the industry is one of the most crucial and authoritative factor of the
business environment. Discuss in brief the structure of the car industry. .............................2
3. Discuss in brief the company and the nature of the chosen company (a UK PLC) with
respect to the industry structure..............................................................................................2
4. Perform a company based STEEPLE analysis of Bentley to examine the outside business
environment of the company in the last 5-10 years. ..............................................................2
5. Analyse and mention the business difficulties and challenges Bentley incurs and comment
on the outer effects of a business judgement on company, its customers, competitors and
employees. .............................................................................................................................4
REFERENCES ...............................................................................................................................6

INTRODUCTION
The UK Standard Industrial Classification (SIC 2007) refers to the current Standard
Industrial Classification (SIC) which is utilised in categorising the business establishments and
different statistical units on the basis of the kind of economic activity that the businesses perform
(Azad, 202. In this report the industry chosen under SIC 2007 is the Automotive industry. The
subdivision under this is the land transport and the company chosen in the subdivision is Bentley
Motors. This report contains a brief explanation of the chosen business enterprise in the
respective industry. It also explains the structure of the automotive transportation industry
chosen. This also contains a brief STEEPLE analysis of Bentley as an organisation. A discussion
regarding the problems that the business faces from the external environment and the effects that
it has on its decision making is also justified.
MAIN BODY
1. Determine any one business enterprise from the UK Standard Industrial Classification (SIC
2007) and select a UK public limited company (PLC) from that industry.
The industry identified under UK Standard Industrial Classification (SIC 2007) is of Section-H
which is of transportation and storage. This sphere regards with the preconditions of passenger or
freight transportation, either scheduled or not, via rail, pipeline, road, water or air and attached
facilities which includes terminal and parking facilities, handling of cargo, storing (Barua, 2021).
this section also contains the transport equipment which is rental with the drivers or the vehicle
operator. It also contains postal and courier facilities. The subcomponents of this section are
 Division 49: Land transport and transport via pipelines
 Division 50: Water transport
 Division 51: Air transport
 Division 52: Warehousing and support activities for transportation
 Division 53: Postal and courier activities
The selected industry is the car industry. It come under the subdivision 49 of land transport and
transportation via pipelines. The company chosen under this subdivision of land transport is
Bentley Motors (1919–present).
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2. The structure of the industry is one of the most crucial and authoritative factor of the business
environment. Discuss in brief the structure of the car industry.
The motor vehicle industry is an essential component of the UK economic system and very
crucial in encouraging and providing a support in the transferring the plans for reaching to the
next level, advancing global Britain, and the future plans of growth (Buheji, 2018). The
manufacturing of the Automotive based industry assists with a turnover of around £67 billion
and almost provides a value addition of £14 billion in the economy of UK, and normally spends
approximately £3 billion every year in its Research and development.
Individuals employed in the manufacturing sector are almost around 182,000 and
approximately 780,000 in the automotive industry as a whole. The car industry appoints for
almost 10% of the entire UK exports while having around 150+ countries which import the
vehicles that are manufactured in the UK that bring forth trade of £77 billion. From the company
structure it can be concluded that about 8 out of 10 cars that are produced in the UK are then
exported in almost 140+ outside markets globally.
3. Discuss in brief the company and the nature of the chosen company (a UK PLC) with respect
to the industry structure.
The business organisation is a British manufacturer and seller of lavish cars which was
founded by W. O. Bentley in 1919 as Bentley Motors Limited with the idea of to build a fast car,
a good car, the best in its class (Chen, Nguyen and Ha, 2022). Bentley as a brand commenced
with manufacturing of luxury cars and SUVs, and a supplementary of the Volkswagen Group
since 1998 and consolidated under VW's superior brand arm Audi since 2022. With respect to
the industry structure, Bentley are made with high-quality parts which assist in bringing the final
product which is manufactured. For rendering customers with a luxurious feel, it utilises the most
superior quality materials for all the parts in the car. It uses a combination of aluminium and steel
to make the body parts of their cars. In comparison with other automotive companies in the
industry the primary customers of Bentley are: Cultured, aspirational young adults. Men and
women, ages 18-28, who acknowledge digital connections, luxuriant lifestyles, brand name
presence and technology inventions.
4. Perform a company based STEEPLE analysis of Bentley to examine the outside business
environment of the company in the last 5-10 years.1. Social-
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The social factors that affect Bentley as an organisation are: Demographic trends: The demographic trends such as ageing populations, people
migrating and several socio-economic variables have very crucial effect to the revenues
of international brands such as Bentley. Online shopping: Factors such as window shopping, online shopping, e-commerce affect
that have been generated in the last few years affect the sales and revenue generation
numbers enormously as today's generation prefers it over going for a physical shopping
experience (Cimon, Y. and Poulin 2021).2. Technological-
The Technological factors that affect Bentley as an organisation are: Social media marketing: In today's times, no company can swept away from the fact that
social media plays a very crucial role in sales and marketing of such lavish brands.
Bentley as a brand should focus upon collaborating with such platforms to increase heir
revenue generation. Technological innovations: Bentley as an organisation should take into account the
speedily changes and the innovative technologies that take place. These innovations can
assist Bentley to ascertain and acknowledge its potential and touch heights in their
revenue numbers.3. Environmental-
The Environmental factors that affect Bentley as an organisation are: Renewable technologies: there are countries who provide subsidies and assistance to
organisations who acknowledge investments in the renewable energies. Bentley can pick
this as an opportunity and invest in these energies as a long term investment (Pisani and
Rivarola, 2019).4. Economical-
The Economical factors that affect Bentley as an organisation are Efficiency in financial markets: Working in an efficient and impelling market leads to
better liquidity position and strong ability to get in new markets. Bentley should focus
upon improving its health in the financial markets as it determines the ability to generate
capital in the market (Vo and Le, 2021).
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 Labour market situations: The labour market conditions relating to the demand and
supply of labours and workers in the market determine the costs and number of labours
that will assist in production in the company. Bentley must examine and consider the
labour market situation and attract the most efficient workers from the crowd and take
advantage of higher labour productivity to increase effective and efficient production and
supply of goods.5. Political-
The political factors that affect Bentley as an organisation are: Constantly changing environmental situations: The rapid and frequent changes that occur
in the environment and business surrounding make it very difficult for an organisation to
study he current markets or draw upon any analysis for planning future opportunities
(Singh and Singh, 2021). Hence the company should study and plan its strategies while
keeping in mind the changes that occur.6. Legal-
The Legal factors that affect Bentley as an organisation are: Intellectual property laws: These regulations are designed to prevent for any frauds that
may occur and protect the company's label patents and valued contents. This law acts as a
barrier and helps the company to have a competitive advantage over others.7. Ethical-
The Ethical factors that affect Bentley as an organisation are:
 Health and Safety in the Workplace: For Bentley as an organisation, it is very crucial that
the company focuses upon the workplace environment to ensure that safe and healthy
environment prevails in the organisation . This is very important as the employees
working in the company need to have such safe environment to work and process in the
most efficient way (Verma, Bhattacharyya and Kumar, 2018).
5. Analyse and mention the business difficulties and challenges Bentley incurs and comment on
the outer effects of a business judgement on company, its customers, competitors and
employees.
In the times of COVID-19, Bentley went on to suspend its productions for a time period of
almost 4 weeks due to the coronavirus situation. This decision mainly came from the effects that
the virus created and the inflated infection rates on people. This soon created interruption in the
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supply chain as well as there were huge decrease in the demand of the products. But the most
important decision was based upon the priority of Bentley was to protect its employees,
customers and the company as a whole from this pandemic (Wang and et.al., 2022). Bentley
also faced the challenges associated with efficient production of goods in the time period of
Covid-19 situation as the resources utilised were huge and the productivity was on a lower scale
due to the increase in the chain of production while keeping in mind the social distancing
concept.
CONCLUSION
From the above report it can be concluded that the UK Standard Industrial Classification
(SIC 2007) assists to classify industries based upon the type of economic activity that the
businesses are engaged in. It explains the various subdivisions that occur in the respective
industry sectors under SIC. This report concludes the explanation regarding Bentley motors as a
company under the subdivision of land transportation and explains the industry structure with
respect to the company. It also has STEEPLE analysis of Bentley as an organisation and the
challenges that it faces from the external environment.
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REFERENCES
Books and Journals
Azad, N., 2022, May. Understanding DevOps critical success factors and organizational
practices. In 2022 IEEE/ACM International Workshop on Software-Intensive Business
(IWSiB) (pp. 83-90). IEEE.
Barua, S., 2021. Understanding coronanomics: The economic implications of the COVID-19
pandemic. The Journal of Developing Areas, 55(3), pp.435-450.
Buheji, M., 2018. Understanding the power of resilience economy: An inter-disciplinary
perspective to change the world attitude to socio-economic crisis. Mohamed Buheji.
Chen, J.V., Nguyen, T.T.L. and Ha, Q.A., 2022. The impacts of shared understanding and shared
knowledge quality on emerging technology startup team’s performance. Knowledge
Management Research & Practice, 20(1), pp.104-122.
Cimon, Y. and Poulin, D., 2021. Understanding Global Strategic Dynamics. Essentials of
Logistics and Management–The Global Supply Chain.
Pisani, M.J. and Rivarola, F.G.O., 2019. Understanding the determinants of economic
informality in Paraguay: a kaleidoscope of measures. Springer Nature.
Singh, H. and Singh, A., 2021. Understanding inhibitors to XBRL adoption: an empirical
investigation. Accounting Research Journal.
Verma, S., Bhattacharyya, S.S. and Kumar, S., 2018. An extension of the technology acceptance
model in the big data analytics system implementation environment. Information
Processing & Management. 54(5). pp.791-806.
Vo, L.H. and Le, T.H., 2021. Eatery, energy, environment and economic system, 1970–2017:
Understanding volatility spillover patterns in a global sample. Energy Economics. 100.
p.105391.
Wang, W., and et.al., 2022. Business process and rule integration approaches—An empirical
analysis of model understanding. Information Systems. 104. p.101901.
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